Gulf money may help India return to high growth trajectory By Ammar Zaidi

Doha, Nov 10 (PTI) Prime Minister Manmohan Singh Monday
asked rich Gulf nations to invest their surplus funds in
India's infrastructure sector, saying that would help the
subcontinent nation soon return to 9 percent growth levels.

"The present international economic and financial
situation has clouded some of the prospects of growth in near
term. I am, however, confident that the long term outlook for
our economy remains strong and robust," he said addressing the
Indian community here.

The statement by the Prime Minister at the fag end of his
three-day maiden visit to the energy-rich Gulf region came on
a day when U.S.-based Goldman Sachs cut Indian economy's
growth projection to 6.7 percent in 2008-09 from the earlier
7.5 percent.

Asia's third-largest economy sought help from the Gulf
region, particularly gas-rich Qatar where he arrived Sunday,
to boost investments -- key to economic growth.

The current global financial crisis presents a rare window
of opportunity for India and Qatar. The investment needs of a
large emerging economy like India and the large financial
surpluses of an energy rich economy like that of Qatar can be
married together to create a win-win situation, Singh said.

"Our inherent strengths, the large size of our markets,
the diversified industrial base we possess, and the strong and
dynamic private sector will eventually allow us to return to a
9 percent growth trajectory," Singh said.

Reserve Bank of India last month said the USD 1.2
trillion economy may grow at 7.5 percent this fiscal as
opposed to 9 percent in 2007-08. The rate in 2008-09 would be
the weakest since 2005.

Singh had made a similar plea with Oman, his first stop
on the three-day, two-nation visit.

The Prime Minister said India needed USD 500 billion in
infrastructure investments in the next five years.

Indian companies, he said, were looking to invest in
Qatar in sectors like energy, construction, finance and
information technology.

"The Indian economy rests on strong fundamentals. Over
the last four years we have averaged 9 percent G.D.P. growth
per year. Our development efforts have been positively
impacting our agriculture sector which has registered a growth
of over 4 percent this year," Singh said.

The Prime Minister also praised expats, saying Indians
constitute the largest expatriate community in Qatar. "Your
hard work is contributing to our mutual prosperity. Your
annual remittances of over USD 700 million to India are an
invaluable contributions." PTI A.N.Z.
RKM